Short Answer

In North Carolina, you typically need two documents: (1) a General Durable Power of Attorney for finances, and (2) a Health Care Power of Attorney for medical decisions. The financial power must be signed by your aunt and notarized; no witnesses are required. The health care power must be signed by your aunt in front of two qualified adult witnesses and a notary. If your aunt may need real estate transactions handled, include clear real estate authority and plan to record the notarized power with the Register of Deeds before using it for property transfers.

Understanding the Problem

You want to set up decision-making authority for a competent aunt in North Carolina. You are considering a financial power of attorney and a health care power of attorney and want to know exactly what to prepare and how to sign them correctly so banks and doctors will honor them.

Apply the Law

North Carolina recognizes two main delegations: a financial power under the Uniform Power of Attorney Act and a separate health care power. A financial power is “durable” by default here and generally takes effect when signed and notarized. A health care power requires more formalities at signing and names a health care agent to act when your aunt cannot. The Clerk of Superior Court is the forum for later oversight or accountings if there is a dispute, but you do not file these documents with the court to create them. Execute them while your aunt clearly has capacity.

Key Requirements

• Financial (Durable) Power of Attorney: Your aunt signs and acknowledges before a notary. No witnesses required. It is durable unless it says otherwise.
• Health Care Power of Attorney: Your aunt signs before two disinterested adult witnesses and a notary. Witnesses must meet statutory standards (not her health care provider or certain related caregivers).
• Scope and “hot powers”: Certain powers (gifting, self-dealing, beneficiary changes, creating or modifying trusts, and real estate conveyances) should be expressly granted in the document if desired.
• Real property transactions: If the agent will sign deeds, include real estate authority and record the notarized power with the county Register of Deeds before using it to convey property.
• Agent duties and oversight: Agents must act in the principal’s best interests and keep records; courts can compel accountings and address misuse.

What the Statutes Say

• N.C. Gen. Stat. § 32C-1-105 (Execution of power of attorney) – Financial POA must be signed by the principal and acknowledged before a notary.
• N.C. Gen. Stat. § 32C-1-104 (Durable power of attorney) – A POA is durable unless it states it ends at incapacity.
• N.C. Gen. Stat. § 32C-3-301 (Statutory form power of attorney) – Provides a recognized North Carolina financial POA form.
• N.C. Gen. Stat. Ch. 32A, Art. 3 (Health Care Power of Attorney) – Sets requirements for executing a health care power of attorney, including two witnesses and a notary.

Analysis

Apply the Rule to the Facts: Because your aunt is competent, she can execute both documents now. For finances, she should sign a North Carolina-compliant durable power before a notary; witnesses are not required. For medical decisions, she must sign a health care power before two qualified adult witnesses and a notary. If real estate may be involved, include explicit real estate authority in the financial power and record it with the Register of Deeds before any deed signing.

Process & Timing

1. Who files: No filing is required to create the powers. Where: Sign in North Carolina before a notary; add two qualified witnesses for the health care power. What: Use the North Carolina statutory financial POA form or an attorney-drafted version; use a North Carolina health care power of attorney form. When: Execute while your aunt clearly has capacity; do not wait for a health crisis.
2. If the agent may handle real estate, record the notarized financial POA with the Register of Deeds in the county where the property is located before using it in a deed. Banks and other institutions may take several days to review; provide copies promptly.
3. Distribute copies: give the financial POA to financial institutions and keep the original secure; give the health care POA to the health care agent and physicians and consider registering an advance directive copy with relevant providers.

Exceptions & Pitfalls

• Health care POA signing errors: it requires two qualified adult witnesses and a notary; using only a notary will invalidate it.
• Missing express powers: gifting, beneficiary changes, self-dealing, or real estate authority typically must be clearly stated.
• Real estate use: record the notarized financial POA with the Register of Deeds before any deed is signed under the POA.
• Capacity issues: if capacity is questionable, postpone and reassess or seek medical confirmation to avoid later challenges.
• Agent oversight: agents must keep records; the Clerk of Superior Court can compel an accounting if concerns arise.

Talk to a Estate Planning Attorney

If you’re dealing with setting up financial and medical decision-making documents for a loved one, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.